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HomeMy WebLinkAbout1994-310 ,-L I. " , RESOLUTION NO. 94-310 r WHEREAS, pursuaot to the Minnesota Developmeot District Act, Minnesota Statutes ~9 .124- 469.134, as amended (the "Act"), the City Council authorized the establishment of a Development Program (the "Program") pursuant to the Act and bas establisbed Tax Increment Finaociog District No. 1 (the "District"), and a Tax Increment Finaociog Plan (the "Plan") also pursuant to the enabliog statutes of the State of Minnesota; and, WHEREAS, the major objectives of the Council io establisbing the Development District were to remove, preveot, or reduce blight, blightiog factors, causes of blight, or the spread of blight and deterioration; eliminate unsafe structures and conditions; provide land for public parking, util ities and facilities; remove iocompatible land uses, eliminate obsolete or detrimental uses; aod assemble laod for redevelopment; and, io furtherance of the Program and the Plan, the City bas negotiated with Lancga Corporation, a Delaware corporation ("UBC") the owner and operator of a Retail aod Wbolesale Lumber center and storage area for the relocation of their busioess ("old site") to a new site io the Stillwater Industrial Park ("new site"). In furtheraoce of this purpose, agreements bave been negotiated with UBC for the City to acquire property from Bill ]. Pauley (the new site) and to build aod equip a Retail and Wholesale Lumber Ceoter thereon and to then trade the new site to UBC for the old site, all as described io a document entitled " Agreement for Exchange of Real Property and Municipal Industrial Developmeot" attached as Exhibit A (the" Agreement"). It bas also become necessary to carry out the purposes of the Agreement to agree with Northern States Power Company (NSP) and St. Croix Cateriog Company (" Anderson") to purcbase from the City and the City coovey to them the old site all as described io Exhibits A through I to the Agreement. r , NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1.1. The lumber iodustry bas been a significant economic presence in the City since 1843, bowever, shortly after the turn of the century, the iodustry began a steady declioe that bas bad a negative effect on the economic health of the City. UBC and its predecessors have occupied a site io the Central Downtown Busioess District of the City where they have stored, warehoused aod distributed forestry products to the public and are the last remaining lumber iodustry to provide this product io the Ceotral Busioess District. Because of site restraints and the changiog nature of the Downtown area, they have found that it is esseotial to their industry that they relocate to the Industrial Park of the City in a modern facility that would allow them to flourish. (' 1.2. The City finds, bowever, that part of the old site upon which the iodustry is now located (the "Yard Site") contains hazardous wastes. A Phase I Enviroomental Site Assessmeot (ESA) completed for the property iodicated that the Yard Site was occupied by Stillwater Gas and Electric Light Company from approximately 1887 to 1910 at which time it was purchased by Bluff City Lumber and Consumers Light & Power Co. Northern States Power (NSP) Company purchased the yard Site io approximately 1924 and it was later acquired by UBC io 1972. While occupied by Stillwater Gas and Electric Light Company, predecessors to NSP, the site was used as a coal gasification plant. A TEC Associates, loc., has completed a Phase D Enviroomental Site Assessment at the Yard Site and found polynuclear aromatic hydrocarbons (pAHs) io soil and groundwater samples collected at the site. Naphthalene, f1uoranthene, and benzene concentrations were detected io a downgradient monitoriog well that exceeded the Minnesota Department of Health (MOH) Recommended Allowable Limits (RALs). The Minnesota Pollution Control Agency (MPCA) bas designated the site as Stillwater Gas Manufacturiog Site #1. The United States Enviroomental Protection Agency (USEPA) has completed a Preliminary Assessment aod a Site Inspection (' r'- I r I. l. report for the site. The site inspection was completed in 1987 by Ecology and Environment (EP A Contractor). MPCA staff have indicated that the site is scheduled to be scored within the next year under the new Federal Hazard Ranking System (HRS). 1. 3. The City finds that without the public assistance that is contemplated by this Agreement the Downtown Site could oot be sold to enable the relocation of UBC and without the public assistance that is contemplated by this Agreement the site would become more marginal and blighted and result in the loss of employment opportunities. 1.4. The City finds that the continued viability of the lumber distributing facility is vital to the ecooomic life of the City. The City finds that substantial public financial assistance to UBC as contemplated by this Agreement is equally vital to the ecooomic life of the City. The City finds that the ecooomic assistance cootemplated by this Agreement will (i) serve the public purpose underlying the City's policy of protecting and preserving public health, safety and general welfare of its citizens, (il) assist in achieving the objectives of the City's and the related state and federal programs of ecooomic assistance and (Hi) prevent the emergeoce of marginal and blighted land and the loss of jobs in the City. 1.5. The City finds that the public interests described above will be furthered by the City purchasing property in the City Industrial Park and building a facility for the relocation of UBC, and that exchanging the completed new facility to UBC for the Downtown Site that they now occupy will offer a reasooable possibility for survival of the lumber industry in the City and that the participation in the ecooomic viability of that industry as contemplated in this Agreement is in the best interest of the City and its residents. 1.6. The Agreement and the Exhibits A through I of the Agreement are approved and the Mayor and City Clerk and other City officials are authorized to sign the documents and to take the action necessary to effectuate the Agreement. Enacted by the City Council this 12th day of December, 1994. ~~~ Charles M. Hooley, May ATTEST: ~~~ LJ. OJ~ Morli eldon, City Clerk